Viewing insider transactions for Shenzhen International Holdings Limited's (HKG:152 ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
The CEO & Executive Director, Zhengyu Liu, made the biggest insider sale in the last 12 months. That single transaction was for HK$3.1m worth of shares at a price of HK$8.10 each. That means that an insider was selling shares at slightly below the current price (HK$8.59). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 100% of Zhengyu Liu's stake. The only individual insider seller over the last year was Zhengyu Liu. Notably Zhengyu Liu was also the biggest buyer, having purchased HK$265k worth of shares.
Happily, we note that in the last year insiders paid HK$265k for 37.30k shares. On the other hand they divested 791.57k shares, for HK$6.4m. Zhengyu Liu divested 791.57k shares over the last 12 months at an average price of HK$8.04. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Shenzhen International Holdings
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Our data suggests Shenzhen International Holdings insiders own 0.07% of the company, worth about HK$14m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. I generally like to see higher levels of ownership.
It doesn't really mean much that no insider has traded Shenzhen International Holdings shares in the last quarter. We don't take much encouragement from the transactions by Shenzhen International Holdings insiders. But it's good to see that insiders own shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Shenzhen International Holdings. For example, Shenzhen International Holdings has 2 warning signs (and 1 which doesn't sit too well with us) we think you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.